About the Crypto Loan Calculator
This crypto loan calculator shows the numbers that matter when you borrow against Bitcoin, Ether or another coin: your loan-to-value (LTV) ratio, the interest you will pay over the term, and the collateral prices at which the lender issues a margin call and liquidates your position.
It suits anyone comparing a centralized lender's offer, planning how much stablecoin to borrow against a long-term holding, or checking how much of a price drop an existing loan can survive. Enter the lender's own margin-call and liquidation LTVs — they differ between platforms — and the calculator translates them into coin prices you can set alerts for.
Interest is treated as simple interest on the principal (as with most interest-only crypto loans), and the trigger prices are based on the principal outstanding today. If interest accrues onto your balance, your real trigger prices creep upward over time, so leave a buffer.
With the default inputs, the loan-to-value (ltv) is 40%. Change any value above to recalculate instantly.
How to use the crypto loan calculator
- 1Enter how many coins you will pledge and the current price per coin.
- 2Enter the amount you want to borrow, the APR and the term.
- 3Enter the lender's margin call, liquidation and maximum LTV from its terms.
- 4Check your LTV and the price drop your loan can survive.
- 5Set price alerts at the margin call price so you have time to add collateral.
Formula and method
Loan-to-value divides what you owe by what your collateral is worth. Because the loan is fixed in dollars while the collateral price moves, LTV rises as the coin falls. Solving LTV = threshold for price gives the margin call and liquidation prices: the loan divided by (coins × threshold LTV).
Interest is simple interest on the principal for the chosen term, which matches interest-only crypto loans where you pay interest monthly and the principal at the end. The maximum loan is the collateral value times the lender's maximum starting LTV.
- L
- Loan principal
- C
- Number of coins pledged as collateral
- P
- Current price per coin
- LTVₜ
- Lender's margin call or liquidation LTV threshold
Worked examples
Borrow $40,000 against 1 BTC at $100,000
A $40,000 loan on $100,000 of BTC is a 40% LTV. At 10% APR for a year the interest is $4,000. The 75% margin call hits when BTC falls to $40,000 ÷ 0.75 = $53,333, and liquidation at 85% LTV happens near $47,059 — a 52.9% drop.
10 ETH at $3,000, $15,000 loan for 6 months
$15,000 against $30,000 of ETH is 50% LTV. Six months at 8% costs $600 ($100 a month). With a 70% margin call and 80% liquidation, ETH must stay above $2,142.86 to avoid a call and above $1,875 to avoid liquidation — only a 37.5% cushion.
Maxed-out 50% LTV on 2 BTC over two years
Borrowing $90,000 on $180,000 of BTC uses the full 50% LTV. Two years at 12% adds $21,600 of interest, and BTC falling about 41% to $52,941 would trigger liquidation at 85% LTV.
Frequently asked questions
What is a good LTV for a crypto loan?+
Many borrowers stay at 25–40% LTV. Crypto can fall 50% or more in weeks, so a lower starting LTV leaves room to survive a crash without adding collateral or being liquidated.
What happens at a margin call?+
The lender notifies you that your LTV has crossed its warning threshold. You can usually add more collateral or repay part of the loan to bring LTV back down. If you do nothing and the price keeps falling, liquidation follows.
What happens when a crypto loan is liquidated?+
The lender sells enough of your collateral to repay the loan, often with a liquidation fee on top. You keep any remaining collateral but lose the coins that were sold, usually near the bottom of a price drop.
Is borrowing against crypto a taxable event?+
In many jurisdictions, including the US, taking a loan against crypto is not a sale, so it is not taxed by itself. A liquidation, however, sells your collateral and can create a taxable gain or loss.
Does interest change my liquidation price?+
Yes, if unpaid interest is added to the balance. A larger balance means a higher LTV at any price, so the liquidation price rises over time. Paying interest monthly keeps the trigger price stable.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.